Dollars and Jens
Wednesday, May 12, 2004
Trade and Chinese demand for oil
Incidentally, on another note, Cowen suggests that free-traders shouldn't argue that China buying oil harms the United States. I'm not sure I get this. Surely ceasing to import oil would drive domestic prices higher, and is no solution, but that doesn't mean that our benefits from trade can't be reduced by the actions of other countries. What am I misunderstanding?

Update:Before I even get this up, it looks like someone else has made alomst the same point, though I prefer the way I put it, and am thus still posting this.

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